Receipt Surveys vs. Mystery Shopping: Which one gives comprehensive insight into the customer experience?

AJancynEvaluationShopsResearchWhitePaper

Introduction:

Meetingcustomerneedshasalwaysbeencentraltoanybusiness’ssuccess.Butcompaniesarefacingnewpressurestokeepupwithever-intensifyingcustomerexpectations.Iftheyfail,theyrisklosingcustomerstocompetitors.

AccordingtoresearchfrommanagementconsultingfirmAccenture,customerswitchingcostsbusinessesaroundtheglobe$1trillioneachyear.

Why do customers switch? Sixty-one percent say they stop doing business with a companywhentheyperceiveitisnolonger“relevant.”Thatmeansthattheyfeelthebusinessnolongermeetstheirneeds.Bycontrast,68percentofcustomerswillrecommendbusinessestheyseeasrelevanttofamilyandfriends.1

It’s clear that every company needs to stay “relevant” to its customers. Butwhat does thatmean?Andhowcanyoumaintainyourrelevance?ArecentForbesarticleoffersclarification:

Perceptions of your brand are shaped by the way your company interacts with customers,keeps up with current product or service expectations and whether customers feel trulyconnectedtowhatyou’redoing.Managingabrandwithoutconsideringwhatyourcustomerswant (ormore importantlybelieve)about yourbrandcouldput youona fast track to losingmarketshareatbest,vanishingintoobscurityatworst.2

Understandingwhatcustomersneedand fosteringaconnection toyourbusinessarekeys tomaintaining relevance. Youneed feedbackprograms thatoffer authentic and comprehensiveinsightintocustomerperceptions.

Many businesses have adopted survey programs to collect customer feedback. For retailcompanies, register receipts are a popular feedback gatheringmethod. Those surveys are asolid foundational step—but they have limitations. To understand customers’ true feelingsaboutinteractionswithyourcompanyyouneedamixofapproaches.

1“1TrillionatRiskforCompaniesThatFailtoMaintainCustomerRelevance,”Accenture,Accenture,19Jun2018,https://newsroom.accenture.com/news/1-trillion-at-risk-for-companies-that-fail-to-maintain-customer-relevance.htm2Lischer,Brian.“HowtoKeepYourBrandRelevantinaRapidlyChangingWorld,”Forbes,ForbesMedia,LLC,232Lischer,Brian.“HowtoKeepYourBrandRelevantinaRapidlyChangingWorld,”Forbes,ForbesMedia,LLC,23Oct2017,https://www.forbes.com/sites/theyec/2017/10/23/how-to-keep-your-brand-relevant-in-a-rapidly-changing-world/#5a3738075e4c

Mysteryshoppinghas longbeenahigh-valuesourceofcustomerexperience feedbackand ismoreimportantthaneverinthecurrentclimate.

With mystery shopping, you can learn specific customer perspectives that register receiptsurveysmiss.Amysteryshopperisaddressinginsightintothefullexperienceyouhavetrainedemployeestoaccomplish.Scoresindicatehowwellyoursites—betheyretail,restaurant,hotel,bank, apartment properties, entertainment, or any customer-facing industry really—meetcustomerneeds.Thispowerfulintelligencecanhelpyoustayrelevantintoday’seraofhyper-competition.

Register Receipt Survey Programs: Some Insights, but Many Shortcomings

Receiptsurveysareubiquitous.Afternearlyeveryregistertransaction,servicerepresentativeshighlightasurveyinvitationatthebottomofthecustomer’sreceipt.Often,thesesurveysaskforfeedbackinexchangeforentryintoasweepstakesorasmallrewardlikeacoupon.

Traditionally,the invitationmayhavedirectedcustomerstocallanumberforaninteractivevoiceresponse(IVR)survey.While IVR surveys still exist today, asking customers to loginto a web-based survey has become a more commonpractice. And if the business already has your email or cellphone number, don’t be surprised to find a text or emailinterruptingyouforyourfeedback.

Intheworldofcustomerexperience(CX),aregisterreceiptsurveyisatypeofpost-interactionor transactional survey. Its purpose is to measure customer perceptions about a specificinteraction.

Withtransactionalsurveys,companiescangainsomeinformationaboutcustomerperceptions.They can track trends over time to measure the performance of customer-facing teams.Withoutquestion,a register receipt surveyprogramcanhavevalue.Gatheringanycustomerfeedbackisbetterthanhavingnoinsightatall

Receipt Surveys Offer a Limited Picture of the Customer Experience

CX-savvy companies know that a single-pronged feedbackapproach doesn’t yield themost actionable information. That isverytrueforregisterreceiptsurveyprograms.

To be sure, companies should never rely on register receiptsurveys as their onlyway of gathering customer insight. Customers often ignore them—andresultscanbeinconsistent.

AsVickiDempseyofmarketresearchfirm,JancynEvaluationShops,explains:

“Customers todayare justplain tiredof receipt surveys,particularlyas they relate toamulti-franchise enterprise. What is the motivation to fill one out? Is the customer simply clickinganswers to a survey for a free doughnut or do they have insightful feedback to build brandloyalty? Oftena customerwill start the surveyandquickly grow tiredof thequestions, thusansweringjusttocompleteitquickly.Weretheyreallypayingattentiontohowmanyminutesbefore they were greeted or if they were offered a larger size drink? This makesmeasuringcompliance,traininggoalsandcustomersatisfactionviathismethodologyaloneunreliable.Ourresearch shows, if usinga customer survey, combining itwithamystery shopprogram is theanswer.One feedbackoptionweofferat Jancyn is to includeaquestion in themystery shopform thatasks if the surveywas explainedor promotedat checkoutor during the visit. Thishelpsourcleintsunderstandwhyparticipationmaybelower,orhigher,atdifferentlocations.”

There are several factors thatmake register receipts less valuable as a standalone feedbackgatheringoption.

Decreased Response Rates Due to Survey Fatigue

On any day, the average customer can receive multiple feedback requests. Your customersencountersurveypop-upsonwebsitesandreceiveemailsurveysafterpurchasingonline.Whenthey visit retail locations,many venueswill have a receipt survey.A simpledayof shopping,banking,dining,runningerrands,orevenadoctorvisitcanresultinseveralsurveyinvitations.

Alltheserequestscandiminishcustomers’willingnesstoparticipateinsurveys.Thosethatdoopt-incangrowboredortirequickly.Manypeoplestopprovidingfeedbackpart-waythroughasurvey.

Whenrespondents feeloverwhelmedby thesheernumberof surveyopportunities—orgrowwearywhiletakingasurveytheyexperience“surveyfatigue.”AstheNationalResearchCenternotes,surveyfatiguecanleadtolowerresponseratesandincompletedata.3

Today,constantsurveysand‘ratetheexperience’requestsescalatethesurveyfatigueproblem.They’repervasivebuteasytotuneout.Ifyourelyonthemasyouronlyfeedbacksource,youaremissing out on critical business intelligence. In addition, the feedback submitted canbequestionable.

Diminished Abil ity to Ask In-Depth Questions

Onewaycompaniesaddressthesurveyfatigueissueisbycreatingshortersurveys.Andthatisa reasonableapproach. In fact, a recentForbes articlenoted thatoverhalfof customers saytheywillspendlessthanthreeminutesonanysurvey.4Customersareoftenwillingtoanswerjusttwoorthreequickquestions—ifany.

However, short surveys limit the amount of customer feedback you can collect. A three-questionsurveycangiveyougeneral insights,but tohaveaclearunderstandingofhowwellyouremployeesaretrainedtomeetcustomerneeds,youneedtoreceiveanswerstomorein-depthquestions.Andyouneedopen-endedquestionsthatevaluatethenuancesofemotion,insight, and relevance that are vital to your business. You need detailed comments toquestions that are specific to your brand. You need to feel like you are standing in yourcustomers’shoes.

3“HowtoAvoidSurveyFatigue,”NationalResearchCouncil,NationalResearchCouncil,Inc.,18Nov.2016,https://www.n-r-c.com/how-to-avoid-survey-fatigue/4Dishman,Lydia.“Retailers:YourSurveysAreMakingCustomersSuffer,”Forbes,ForbesMedia,LLC,7Mar2014,https://www.forbes.com/sites/lydiadishman/2014/03/07/retailers-your-surveys-are-making-customers-suffer/#5f52e7372b4f

Lag in Response Time Can Decrease

Feedback Quality

Although customers receive receipt survey invitations right away, there is often a lag beforethey provide feedback. At the end of a transaction, customers are focusing on exiting thebusiness.They’reunlikelytostoptotakeacallorlogintoawebsitetocompleteasurvey.

Theverybestsurveyapproachesaimtocollectcustomersentiment in real-time.Since this isnotalwayspossible,gathering feedbackwithin24hours isagoodalternative.However,withreceiptsurveys,youcanlosethissenseofimmediacy.Exceptforaincludingcut-offtime,youhave little control overwhen your customerprovides feedback. It can easily slip outside theoptimalwindow.

Why is thisan issue?As timepassesafteran interaction, customerperceptions start todim.Theyare less likely to rememberspecificsof theexperienceandhow itmadethemfeel.Thefeedbackyoudoreceivehaslessvalueanddiminishesyourabilitytotakemeaningfulaction.

Customers Who Respond Often Have Had Outl ier Experiences

Whenmostcustomersreceivearegisterreceiptsurvey,theyignoreit.Peoplejustdon’thavetimeorinteresttofilloutasurvey,evenwithasweepstakeprize,coupon,orincentiveyouareoffering.Today’sregisterreceiptresponserateisadismaltwopercent—downfrom20percenttwodecadesago.5

Theseverylowresponseratescanalsomeanthedataisnotveryreliable.AccordingtotheSixSigmaInstitute,surveyslikethesedonotrepresentarandomsampleofrespondents.Instead,those who do respond have often had outlier experiences—either very positive or verynegative:

…thegroupofpeoplewhochoosetoanswerasurveyisnotnecessarilyrepresentativeofthecustomerpopulationasawhole.Thesurveyrespondersaremoremotivatedtotakethetimetoanswer the survey than the non-responders; therefore, this group tends to contain a higherproportionofpeoplewhohavehadeitherverygood,ormoreoften,verybadexperiences.6

5Ibid.6Brogle,Rob.“HowtoAvoidtheEvilsWithinCustomerSatisfactionSurveys,”iSixSigma,SixSigmaInstitute,n.d.,https://www.isixsigma.com/methodology/voc-customer-focus/how-to-avoid-the-evils-within-customer-satisfaction-surveys/

What’s the takeaway? Receipt surveys typically offer a skewed perception of customersatisfaction.Youmayonlyhearfromasubsetofcustomerswhofeelcompelledtoraisetheirvoice.Thiscandistortyourperceptionofhowyoursitesandteamsareperforming.

Mystery Shopping Programs: Powerful, Actionable, Third-Party Objective Look at the Customer Interaction

Withamysteryshoppingprogram,companiescangaindeepandmeaningfulinsightintothecustomerexperienceusing qualitative and quantitative data. Mysteryshopreportfeedbackisspecifictothewayemployeesaretrained,callsarehandled,storesaremerchandised,complianceisadhearedtoandbusinessgoalsaremeasured.

Sinceitsoriginsinthemid-20thcentury,mysteryshoppinghasgrowntoa$1.5billionindustry.7

Originally focusedon investigatingemployee integrity,mystery shoppingevolved toprimarilyemphasizequalityofservice.

Today’s mystery shopping companies offer in-depth, statistically valid insights that helpcompaniesunderstandand improvethecustomerexperience.Andthetypesoforganizationsthat rely on mystery shopping has expanded to include government agencies, healthcarefacilities,educationalinstitutions,andmanyothers.

Themostsuccessfulmysteryshoppinginitiativesincludearegularnumberofshopsscheduledacrossawidegeographicfootprint.Inaddition,shoppersfromdifferentdemographicsegmentscanbeassignedtohelpunderstandhowthebusinessmeetstheneedsofdiversepopulations.

7“News&Media,”MSPAAmericas,MysteryShoppers

This breadth allows organizations to benchmark performance across multiple sites, analyzeresultsandcomparetrendswiththeinformationtheyneedtomanageanddriveimprovementwithconfidence.

Mystery shop providers maintain a large database of qualified independent contractorshoppers.Thatway, theycanservenationalchainsbyprovidingbelievableshopperswhoarefamiliarwithlocalmarkets.MysteryShoppersmustshowintegrity,haveexcellentwritingskills,andhaveaknackforattentiontodetail.Theymustfollowshopguidelinestoateeandmanycomplete training courses offered through organizations such as the Mystery ShoppingProfessionalsAssociation(MSPA).www.mspa-americas.org

Mystery Shopping Offers Deep Insight into the Customer Experience

Everyemployeethatinteractswithacustomershouldbeaknowledgeablebrandambassadorforyourcompany.

Yourenvironmentandproductdisplaysshouldprovideapositiveimpression of your business. Employees should always followcompany policies and put any training received to use. It goeswithout saying this is especially true where legal compliance isinvolved,suchasalcoholagelimitrequirementsandpropertyfairhousingknowledge.

Motivates Employees to Deliver Consistent High-Quality Service Levels

Ifemployeesknowtheirmanagerisobservingthemengagingwithcustomers,theywilllikelydotheirbestwork.Theywillputforthextraeffortandmakesurethateachcustomerhasahigh-qualityexperience.

Butwhathappenswhenamanagerisnotwatching?Doemployeesmaintainthosebehaviorsoractinalessservice-mindedway?Withamysteryshoppingprogram,youdon’thavetoguess,youcananswerthosecrucialquestionsandmore.

Mystery shoppers pose as regular customers to gather information about business practicesandservicelevels.Sincemysteryshoppersdonotdisclosetheiridentity,employeesneverknowifacustomermightbesecretlyevaluatingtheirbehavior.Theywillknowtheyneedtodeliverthe best service to every customer. The feedback report employees receive is notpunishment—butanopportunitytoexpandtheirprofessionaldevelopmentandcareerskills.

Tailored Programs that Offer In-Depth Insights

Unlikereceiptsurveys,whichneedtobeshorttobeeffective,mysteryshopscangatherdeepintelligence.Companiesworkwithmysteryshopproviderstodesignmulti-facetedsurveysthatevaluatethemanyfactorsthataffectthecustomerexperience.

Is your location clean?Are your product displays set upcorrectly? Is your point-of-sale system easy tounderstand?Didemployees followspecificprocedures—likeofferingcustomersabusinesscardorinvitingthemtojoina loyaltyprogram?Was rapport created?Whatelsedo you need to know to understand if customers arereceivingthetypesofexperiencesyouexpectyourteamtodeliver?

Withareceiptsurveyalone,youareunlikelytogainthisbreathofinsight.

Access to Competit ive Intel l igence

Anotherway amystery shop can be used is to gather competitor insight. You can scheduleshopsatyour locations—andatcompetitor sites in thesame locale.Thiscanyield importantinformationthatyoucanusetoshapeyourbusiness.

For example, you can task a shopperwithbuying and returningproducts at your site andatcompetingvenues.Youcanlearnwhetheryourreturnexperienceisbetterorworsethanyourcompetitor’s practices. Then, you can use insights gained to redesign processes or providecoachingtocreateastreamlined,customer-friendlyreturnexperience.

Register Receipt Surveys vs. Mystery Shopping : The Verdict Is In

Clearly,collectinganycustomerfeedbackisbetterthannoneatall.Butcompaniesthatrelyonlimited feedbackcollectionmethods—likeregister receiptsurveys—areputting themselvesatriskoflosingcustomers.

Today’s customers are more empowered than ever before. They have 24/7 access toinformationonbrandsandproductoptions—andareverywilling to shoparoundbeforeanypurchase.AndascompanieslikeAmazonandZapposmakeworld-classexperiencesaccessible

to everyone, customers expectations are rising.A subpar interaction can cause customers todefecttocompetitors.

Justhowbig istheproblem?Areported47%ofcustomerswillabandonabrand if theyhavebadexperiences—evenifthey’vebeenloyalforyears.8

You can’t leave the customerexperience to chance.Andyou can’t relyonhit-or-miss surveydata to assess performance and make the shifts necessary to keep pace with escalatingcustomerexpectations.

Registerreceiptsalonearen’tgoingtoprovideacompletepicture.Theywillnevergiveyouthedeep intelligence you need to deliver exceptional experiences across your entire servicefootprint.

By contrast, mystery shopping lets you access powerful insight that can transform yourbusiness.Youcanpartnerwithanexperiencedmysteryshopprovider todesignperformanceevaluationprogramsthatgatherhighly-specificandmeaningfulfeedback.

Withamysteryshoppingprogram,youcancollectquantitativefeedbacktocomplementdatagainedthroughtraditionalsurveyprograms.

Today’sempoweredcustomersknowtheyhaveachoice.Theydon’tmakepurchasesbasedonprice and product alone. Instead, they consider intangibles—like experience quality andperceivedrelevance—whenmakingbuyingdecisions.

Companies that care about customer perceptions and meeting customer needs will thrive.Otherswillfallbehind—andultimatelymayfail.

Tokeepapulseoncustomersatisfaction,youneedtogatherasmuchfeedbackaspossible.

Mystery shopping—with its uniqueopportunity to collect tailored and actionable answers tothequestionsthatdriveyourbrandvalues—shouldbean instrumentalpartofyour feedbackgatheringprogram.

8VandeZande,Jenn.“47PercentofConsumersWillAbandonYourBrandforJustOneReason,”SAPBrandVoice,ForbesMedia,LLC,28Sep.2017,https://www.forbes.com/sites/sap/2017/09/28/47-percent-of-consumers-will-abandon-your-brand-for-one-reason/#46976491566c

About Jancyn Evaluation Shops

Since1980,JancynEvaluationShopshasprovidedbestpracticesforcustomersatisfactionandemployeeperformancefeedbackprograms.WepartnerwithprogressivebusinessesthroughouttheUnitedStatesandCanadatoembracethecustomersatisfactionexperience,brandawareness,discovery,association,andinteractionateverytransactionandtouchpoint.Insightfromtheoutside.Thathasbeenourfoundation,andit’screatedatraditionofprovidingrealvalueineveryprogramweoffer.Ourunderstandingofyourmysteryshoprequirementsishonedbyyearsofprogramdevelopment,cuttingedgetechnicaltechniquesandtools,andrealinsightintoyourbusinessgoals.Tolearnmorepleasevisitusatwww.Jancyn.com